(This is video presentation. Script below.)
Let's talk about transitioning from public accounting to industry, particularly the skills you should develop. Public accounting is where most CPAs start, but after a few years, it can feel monotonous and exhausting, which is why many make the switch.
Industry accounting offers the chance to work for a single business and tackle a broader scope of projects, allowing for creativity and resourcefulness. Plus, the work-life balance is generally much better.
Upskilling with NASBA CPE Courses
Before we dive deeper, here's a quick plug: We offer NASBA CPE courses at Wisdify to help accountants thrive in industry roles, covering topics like financial modeling, forecasting, and Python. Check out our courses to brush up your skills and earn CPE credits.
From Analyzing to Forecasting: The Shift in Focus
In public accounting, your main tasks often revolve around analyzing financial statements from other companies, whether through auditing or preparing tax returns. However, in industry, your focus shifts to creating budgets and forecasts for your own company.
Forward-Looking Analysis and Variance Investigation
Instead of just reviewing past data, you'll be looking ahead. You’ll create budgets, forecast future revenue and expenses, and analyze any variances. Executives will want answers to questions like why there’s a 5% variance in a certain account or why growth projections weren’t met. It’ll be your responsibility to investigate and explain these discrepancies.
Financial Modeling: A Core Skill in Industry Accounting
Financial modeling is a huge part of industry accounting. Unlike public accounting, which is often retrospective, industry roles require forward-looking models.
Example: Modeling for Expansion
Let’s say your company’s leadership wants to open three new locations next year. They’ll come to you to create a model outlining costs, the break-even timeline, and expected ROI. Advanced Excel skills are essential here, including functions like INDEX MATCH and IRR.
Adapting to New Technology: ERP Systems
In industry, you’ll encounter ERP (Enterprise Resource Planning) systems, which are central to most companies. ERP systems connect departments like sales, operations, HR, and finance, providing a comprehensive view of the business.
Becoming the ERP Expert
Whether it’s SAP, Oracle, or a custom system, mastering ERP will make you invaluable to your team. Your colleagues may see you as the go-to person for ERP-related questions, so the faster you learn it, the more valuable you become.
Cross-Department Collaboration and Communication Skills
One significant change in industry accounting is working across departments. You’ll collaborate with teams in sales, operations, marketing, and legal, many of whom don’t speak finance.
Simplifying Financial Concepts
Good communication skills are essential. Simplifying concepts, using tools like flowcharts or 2D bar graphs, can help you convey complex financial data. This makes it easier for non-financial colleagues to understand and can position you as an invaluable resource.
Increased Self-Reliance and Broader Skill Set
In industry, you may be the only accountant, unlike in public accounting, where you have team support. This demands self-reliance and confidence in your work.
Adapting to Diverse Accounting Functions
Industry roles require a broader skill set. You might handle management accounting one day, cost accounting the next, and capital budgeting the day after. Flexibility and resourcefulness are key, as is the ability to propose insights the executive team may not yet realize they need.
Tip: Identify Skill Gaps Through Job Descriptions
Reviewing job descriptions in industry accounting roles that interest you can highlight any skill gaps. Make a plan to develop the skills these roles demand, positioning yourself for success.
Summary: The Rewards of Industry Accounting
The transition from public to industry accounting can be transformative. Industry accounting provides better work-life balance and allows you to apply your skills in more strategic, impactful ways. Success requires a different set of skills, particularly in budgeting and financial modeling, but these skills can set you up for a fulfilling career in industry.